January 9th, 2018, San Diego, CA – Counterpoint Mutual Funds, LLC, announced today Morningstar, Inc., a provider of data and research insights on a wide range of investment offerings, has assigned Counterpoint Tactical Income Fund a Five Star rating out of 275 funds in the Nontraditional Bond category for the 3 year period ending 12/31/2017 based on risk adjusted returns.
During the past three years, Counterpoint Tactical Income’s returns have ranked in the top 3rd percentile among 275 nontraditional bond funds with three years of performance history, according to Morningstar. By Morningstar’s definition, “The Nontraditional Bond category contains funds that pursue strategies divergent in one or more ways from conventional practice in the broader bond-fund universe.”
“We are excited to make our Morningstar star rating debut with the highest possible rating,” said Michael Krause, CFA, co-founder of Counterpoint Mutual Funds and portfolio manager of Tactical Income. “This gives us the validation we’ve worked for during the initial phases of the fund’s life. We look forward to continuing to pursue Tactical Income’s long term goal of effectively managing risk while seeking reasonable returns for our clients.”
Using a quantitative trend-following model, Counterpoint Tactical Income Fund seeks absolute returns via exposure to high yield bond assets during favorable market environments, and seeks a “risk-off” position in short-duration U.S. Treasuries during times of market stress.
“We believe that tactical allocation to high yield bond assets provides a particularly attractive opportunity to investors. Its exposure to offsetting risk factors, interest rate risk and credit risk, position it as an ideal asset class for our trend-following discipline,” said Michael Krause, CFA, co-founder of Counterpoint Mutual Funds and portfolio manager of Tactical Income.
“We continue to maintain our focus on managing downside risk and portfolio drawdowns. We believe this focus reduces investor anxiety and helps prevent our clients from making the wrong decisions during times of market stress,” said Krause.
Counterpoint Tactical Income Fund Institutional shares trade under the ticker CPITX, A shares trade under the ticker CPATX, and C Shares trade under ticker symbol CPCTX.
Counterpoint Mutual Funds, LLC, is an adviser to alternative open-ended mutual funds. Our focus is on quantitative investment strategies that base asset allocation and security selection decisions on academic research and statistical analysis. Our funds seek innovative management strategies, tactical approaches to risk management, and reduction in volatility of returns. Our team consists of experienced investment management professionals and academic researchers who identify and evaluate novel investment strategies.
© 2018 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
The Morningstar RatingTM for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics.
The Morningstar Rating is for the Institutional, A-share, and C-share class only; other classes may have different performance characteristics.
There is no assurance the Fund will meet its stated objective. Investors should carefully consider the investment objectives, risks, charges and expenses of the Counterpoint Tactical Equity Fund and Counterpoint Tactical Income Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained at counterpointfunds.com or by calling 844-273-8637. The prospectus should be read carefully before investing. The Counterpoint Tactical Equity Fund and Counterpoint Tactical Income Fund are distributed by Northern Lights Distributors, LLC member FINRA/SIPC.